-Applicant failed to establish bona fides of such operations when leases
indicated retention of control and responsibility by lessor, and testimony to the
contrary was not supported by documentary evidence. Moreover, vehicles had
always carried lessor's name. Interstate Van Lines, Inc., Com. Car. Applic., 663;
-The following applicants established "grandfather" rights or convenience
and necessity for common-carrier operations conducted with vehicles leased from
owner-operators, soliciting agents, or other carriers: Akron-Chicago Transp. Co.,
Inc., 559; Hermans Stor. Whse. Co., Inc., 81; Hillier Stor. Co., 185; Shayler,
Warren G., 337; Tower Trucking Co., Inc., 399; United Van Lines, Inc., 451.
Contract-carrier authority for leasing of equipment to shippers and other
carriers was denied when nature and extent of such arrangements and territory
involved were not shown, and it could not be determined whether such practices
were interstate carrier operations. Lynch Transfer & Stor. Co. Com. Car.
Applic.. 411 (417);
-Leasing operations involving intrastate service are not within Commission's
jurisdiction. Id. (416);
-Renting of equipment to shippers for operation by latter's employees in
private-carrier service was not subject to the act. McKeown Transp. Co., Inc.,
Contr. Car. Applic., 792 (796).
Presumption that when equipment is leased with drivers to a shipper the trans-
portation is performed by the carrier for compensation and therefore subject to
regulation, must yield to a showing that shipper has exclusive right to direct and
control the operation. Id. (795);
-Shipper's instructions as to delivery points and time of trips are concomitants
of contract-carrier operations in which specific units of equipment are devoted
exclusively to a single shipper, and do not imply shipper's direction and control.
When applicant instructed drivers in all other matters, and hired, paid, and
discharged them, it was a contract carrier. Id. (796).
EVIDENCE. See also AFFIDAVITS; BURDEN OF PROOF; COMPENSATORY RATES;
CONVENIENCE AND NECESSITY (Proof); EMPLOYEES OF CARRIERS; HEARING;
REPORTS; SAVING CLAUSES; WITNESSES.
NEW: When applicant produced no documentary evidence supporting his
"grandfather" claim, although his records and those of shippers were obtainable,
and testimony as to territorial scope of operations was too general to warrant
grant of full authority claimed, he was allowed 60 days to petition for further
hearing on any additional evidence. McDougald Com. Car. Applic., 531 (538).
EXCEPTIONS. See CLASSIFICATION (PROPERTY); JOINT BOARDS; TIME.
EXEMPTIONS. See also MUNICIPALITIES; TRANSPORTATION (Casual, etc.).
SINGLE-STATE OPERATION: Applicant was not operating solely within a single
State when her operations were commonly controlled and conducted as a single
business with those of a carrier operating in three States. Registration of State
certificate denied. Luter Applic. for Registration, 150 (154).
EXTENSION OF OPERATIONS. See CONVENIENCE AND NECESSITY; RAIL
AND MOTOR; TRANSPORTATION (Adequate Service).
FAIR RETURN. See also INCREASED RATES (General Increases). Carriers
with operating ratios substantially higher than average are entitled to propose
rates, individually or as a group, higher than those of their competitors, which
will enable them to earn a fair return. Increased Com. Car. Truck Rates in the
East, 633 (648).
FAMILY RELATIONSHIP. See COMMON Control, ETC.
FINANCIAL CONDITIONS. See CONVENIENCE AND NECESSITY (Certifi-
cates); INCREASED RATES (Justification).
FINDINGS. See COURTS; JOINT BOARDS.
FORWARDERS. IN GENERAL: Forwarders, in their relation to common
carriers, must be treated not as ordinary shippers but as intermediary agencies
through which the carriers hold out to the public. Globe Cartage Co., Inc.,
Com. Car. Applic., 547 (550).
GRANDFATHER OPERATING RIGHTS. See SAVING CLAUSES.
GROUPS AND GROUP RATES. REASONABLENESS: Although grouping of
Colo. sugar origins the same as rail grouping was more extensive than motor
operating conditions warranted, it was not unlawful when revenues were com-
pensatory. Sugar City, Rocky Ford, and Swink formed a natural group and
might reasonably be accorded same rates for longer hauls. Sugar from Colo. to
Kans, and Mo., 161 (168).
Grouping of Lancaster with Harrisburg instead of Reading, Pa., resulting in
lower class rates than those of rail and motor carriers generally under interterri-
torial key-point adjustment, was not unreasonable when the Lancaster area was
closer to Harrisburg and the assailed rates appeared compensatory.
Central Motor Carriers Assn. v. Shirks Motor Exp. Corp., 425.
HEARING. See also NOTICE; SAVING CLAUSES (Interruption of Service).
CONTINUANCE: Refusal of continuance would not violate Soldiers' and Sailors'
Civil Relief Act, which does not apply to proceedings before Commission. Twigg
Com. Car. Applic., 272 (274).
FULL: Defendants who had objected to exhibits indicating divisions accorded
complainant, on ground that they were not shown to be parties to joint rates
with complainant, and who declined to present evidence at hearing, had been
afforded full opportunity to be heard, and were not entitled to reserve a right to
further hearing. Highway Motor Frt. Lines, Inc., v. A. C. E. Transp. Co., Inc.,
513 (517).
FURTHER HEARING: See also COMMON CARRIERS (Qualifications); EVIDENCE;
PARTIES (Substitution). Further hearing requested in exceptions to recom-
mended order, by protestant permitted to intervene subsequent to hearing on
convenience and necessity application, denied when request failed to disclose
new evidence or matters not fully considered. Van Sant Com. Car. Applic.,
495 (503).
HIGHWAYS. See also ROUTES. Designation of highways by number in grants
of operating authority is for identification only, and changes in such designations
do not change the routes authorized. Manhattan Coach Lines, Inc., v. Adiron-
dack Transit Lines, 123 (125).
HOLDING OUT. See COMMON CARRIERS (Definition, etc.); SAVING CLAUSES.
HOUSEHOLD GOODS. New furniture is not within definition of "household
goods" in rule 1 (a) of regulations governing transportation of such goods, and
separate "grandfather" authority was required when such furniture was not
moved with other household goods and circumstances did not conclusively show
that it was acquired with intent of incorporating it into the home. Hermans
Stor. Whse. Co., Inc., Com. Car. Applic., 81 (83).
Irregular demand for transportation and infrequency of service to particular
points distinguish carriage of household goods from carriage of general or special
commodities between specified points, and household-goods carriers need not
prove past operation to every point in territory they hold out to serve. Van
Sant Com. Car. Applic., 495 (498); Hermans Stor. Whse. Co., Inc., Com. Car.
Applic., 81 (86).
INCREASED RATES. See also COST OF SERVICE (Factor in Reasonableness);
DELAY; INVESTIGATION AND SUSPENSION; PRICES.
GENERAL INCREASES: Increase of 4 percent in common-carrier rates and charges
on all traffic, within trunk-line territory and to and from New England territory,
which would produce average operating ratio approximating 93 percent and an
annual return of approximately 30 percent on carriers' operating property, found
reasonable. As insufficient cause was shown for requiring any particular class of
traffic to bear a greater burden of the increase, proposed increases of 10 percent
in 1. t. 1. rates and 25 cents in minimum charges for single shipments were un-
justified to the extent they exceeded 4 percent. Increased Com. Car. Truck
Rates in the East, 633 (650, 652).
Plan to remove authorized increase on any traffic which might be lost because
of lower competitive rates of rail or nonconcurring motor carriers would require
shippers whose traffic was not affected by competition to bear the entire burden
of carriers' increased operating costs, and many such reductions might necessi-
tate another general increase. Such a program should not be encouraged. Id.
(651).
JUSTIFICATION: See also CLASSIFICATION (PROPERTY (Exceptions)). As the
motor-carrier industry was vital to the war effort and a break-down in truck trans-
portation would harm the economic stabilization program more than a necessary
increase in rates, and as carriers operating in trunk-line and New England terri-
tories could not endure extended periods of unprofitable operation, a general
increase was necessary to carry out the national transportation policy. Increased
Com. Car. Truck Rates in the East, 633 (650).
Proposed any-quantity exceptions ratings on ribbon-winding spools and plate
bands in trunk-line territory, higher than governing classification, found not justi-
fied, but increased classification rating of 11⁄2 times first class would be reasonable,
considering their value and density. Classifications in Middle Atlantic States,
716 (719).
See also FAIR RETURN; MINIMUM RATES.
If
motor carriers were dissatisfied with existing rate structure patterned on that of
rail carriers, they were free to establish one better adapted to truck operations,
which would more nearly equalize the opportunity of all motor carriers to earn a
profit. Increased Com. Car. Truck Rates in the East, 633 (651).
INTERMEDIATE POINTS. See also KEY POINTS. Under sec. 212 (a),
"grandfather" certificate for transportation of passengers between New York City
and N. J. termini, including all intermediate points, could not be restricted to
prohibit service at the intermediate points to prevent carrier's engaging in mass
transportation, without its consent. Manhattan Coach Lines, Inc., v. Adirondack
Transit Lines, 123 (129).
Extension authority granted for intermediate points which applicant had been
serving under color of purchased "grandfather" rights, on advice of counsel.
Hoover Motor Exp. Co., Inc., Ext.-Intermediate Points, 315 (332–333).
INTERMEDIATE RULE. Intermediate rule providing for application of more-
distant-point rates at intermediate points not named in tariff, did not apply to
shipments from Atlanta to Asheville when tariff named rates to Asheville, though
not from Atlanta on commodities shipped. Southern Spring Bed Co. v. Bassett
Furniture Truck Co., Inc., 99 (100-101).
INTERRUPTION OF SERVICE. See CONVENIENCE AND NECESSITY (Certifi-
cates); SAVING CLAUSES.
INTERSTATE COMMERCE ACT. See also EMERGENCY PRICE CONTROL
ACTS.
PARTS I AND II Compared: Sec. 216 (f) with sec. 15 (6): 513 (515, 525).
PART II Construed: Sec. 203 (a): 193 (200, 205); Sec. 205 (a): 15 (19); Sec.
209 (b): 35 (42); Sec. 212 (a): 123 (125); Sec. 216: 425 (426); Sec. 216 (d): 1 (3);
Sec. 218 (c): 31 (32).
INTERSTATE COMMERCE COMMISSION. See COURTS.
INTERTERRITORIAL RATES. See COMMODITY RATES
RATE COMPARISONS (Rail With Motor).
INTERVENTIONS. See also HEARING (Further Hearing).
BROADENING OF ISSUES: Since carrier association was not barred from complain-
ing of undue prejudice in rates, shippers' intervention in support of such allegation
did not unduly broaden issues. Eastern-Central Motor Carriers Assn. v. Shirks
Motor Exp. Corp., 425 (426).
INTRASTATE COMMERCE. See EQUIPMENT (Lease).
INVESTIGATION AND SUSPENSION. See also INCREASED RATES; MOOT
CASES; REDUCTIONS; and particular rates or charges.
IN GENERAL: Power to suspend and investigate schedules of contract carriers
is not conditioned on interest of protesting parties, in view of Commission's general
investigatory powers under sec. 204 (c) and its specific authority as to rates under
sec. 218 (c). Paper, Rittman, Ohio, Buffalo, and Pittsburgh, 31 (32).
BURDEN OF PROOF: Emergency Price Control and Stabilization Acts did not
increase burden on carriers of proving lawfulness of increased rates on price-con-
trolled commodities. Effect on interests of the public and transportation agen-
cies is considered under national transportation policy. Bicycles from Westfield,
Mass., to New England and East, 442 (445).
Respondents proposing east-bound rail-competitive rates on dairy products
from the Dakotas and northern Minn. failed to sustain the burden of proving
reasonableness when rates would be higher to trunk-line and New England ter-
ritories than rail rates, and cost data for only one of many participating carriers
did not establish that they were compensatory. Dairy Products, Northwest to
T. L. and N. E. Territories, 607 (610).
Burden of justifying increased rates on joiner work was not sustained when
existing rates were not shown to be unprofitable, no concrete evidence of costs for
that traffic was offered, and average expense of one respondent for all traffic was
not persuasive. Joiner Work from Waynesboro, Va., to Eastern Points, 742 (745).
Regardless of reasons for establishing rates, once they are established the bur-
den of proving that changes are just and reasonable rests on the carriers. Id.
(745).
Withdrawal of protest does not warrant conclusion that the protested schedule
is justified. Paper, Rittman, Ohio, Buffalo, and Pittsburgh, 31 (31-32); Classi-
fications in Middle Atlantic States, 716 (717).
ISSUES. See also COMPLAINTS; INTERVENTIONS; PRICES.
BROADENING: Amendment of application to include more definitely three
States already named therein did not unduly broaden issues when they were spe-
cified in order for hearing. Interested parties who had this notice of scope of
application could not have been surprised to their prejudice. McKeown Transp
Co., Inc., Contr. Car. Applic., 792 (793).
JOINT BOARDS. See also COMMON CARRIERS (Qualifications).
FINDINGS: When record did not describe packages in which complainant's
couches were shipped, joint board's finding that they were in containers and sub-
ject to a higher rating on shipments in boxes or crates was sustained in absence of
exceptions. Southern Spring Bed Co. v. Bassett Furniture Truck. Co., Inc.,
99 (101).
JOINT RATES AND FARES. See also WATER AND MOTOR.
IN GENERAL: Joint rates, whatever the mechanical basis of their determina-
tion, must be just, reasonable, and free from undue prejudice. Water-Motor
Rates Between New Orleans and Houston, 171 (180).
JURISDICTION. See COURTS; DAMAGES; EMPLOYEES OF CARRIERS; STATE
COMMISSIONS; and other pertinent subjects.
KEY POINTS. See also Groups and GrOUP RATES. Key-point condition on
rail-auxiliary service was removed, or certain key points eliminated from restric-
tion, when volume of 1. c. 1. traffic did not warrant continuance of package-car
service at such points, and elimination would expedite through-train service.
Kansas City S. Ry. Co. Ext., 74 (77); Rock Island Motor Transit Co. Ext.-
Eldon, Iowa, 359.
Purpose of key-point condition is to prevent handling of shipments by motor
in substitution for through-train service, when not required in the public interest.
Frisco Transp. Co. Ext.-Mo.-Ark., 219 (221).
To prohibit motor carriage of shipments between a key point and points inter-
mediate to the next key point would defeat the very purpose of substituted ser-
vice, by requiring continuance of way-freight train service on 1. c. 1. traffic. Id.
(222).
Substitution of key-point for rail-haul condition on motor service to railway
branch-line points was impracticable when such points had no through-train ser-
vice and applicant's other operations were not subject to key-point restriction.
Frisco Transp. Co. Ext.-Lake City, Ark., 677 (681).
LABOR. See EMPLOYEES OF CARRIERS; STRIKES.
LEASE. See also EQUIPMENT.
OPERATING RIGHTS: Applicant which had intrastate operating rights on the
"grandfather" date was entitled to authority for interstate operation notwith-
standing that another applicant for same rights had continued operations on
and after that date as the former's lessee. Latter had long acquiesced in lessor's
superior right, and their respective positions were recognized by State author-
ities and courts. Reynolds Transp. Co. Com. Car. Applic., 297 (300, 301).
Applicant and its predecessor had "grandfather" rights over routes which
the predecessor had leased to another, when operations were continued by them
with the lessee's consent. Although the predecessor had also leased rights of a
competitor over the same route, which were later sold to protestant, operations
by applicant, its predecessor, and its successor had been initiated prior to that
lease and continued without interruption. Herrin Motor Lines, Inc., Com.
Car. Applic., 307 (308, 310, 311).
LEGAL RATE. See SCHEDULES (Conflicting Rates).
LEGISLATIVE INTENT. See CONSTRUCTION AND INTERPRETATION.
LESS THAN TRUCKLOAD. See also ALL-COMMODITY RATES; COMMODITY
RATES; INCREASED RATES (General Increases); QUANTITY RATES; SCHEDULES
(Nonauthorized Service).
MINIMUM CHARGE FOR SINGLE SHIPMENT: Proposed rule for minimum charges,
based on 10,000 pounds but not exceeding t. 1. charges, on 1. t. 1. shipments of
mineral wool which filled vehicles to capacity, to insure compensatory revenues
on low-density shipments, might permit discrimination between shippers when
it would apply regardless of size of vehicles. Rule should be revised to apply
when vehicle furnished would accommodate 10,000 pounds at usual shipping
densities. Mineral Wool, South Plainfield, N. J., to Conn., Mass., and R. I.,
689 (692, 693).
RATES: Transcontinental 1. t. 1. rates lower than classification basis on boots
and shoes were not unreasonable when there were extensive departures from
that basis in 1. c. 1. and 1. t. 1. rates on transcontinental traffic. Boots and Shoes
from Boston, Hartford, and New York, 90 (93).
When assailed rates were compensatory only on full loads, rates on smaller
shipments should be sufficiently higher to compensate for additional expense
and labor of handling. Middlewest Motor Frt. Bur. v. Schaffer, 368 (372).
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